Life Insurance Policies - Provisions, Options and Riders(2)

"Nonforfeiture options".

A life insurance policy can be surrendered for its cash value under which policy provision?

Reinstatement provision

After a policy has lapsed, which provision allows the insured to continue coverage?

Suicide clause

An insurer can be protected from adverse selection with which policy provision?

Policy exclusion

How are acts of war considered under a group life insurance policy?

Accidental death rider"

If an insured dies because of an accident, which type of life insurance rider will provide additional coverage?

policy and attached application"

In a life insurance policy, the entire contract consists of the

12/15th of the policy's face amount"

Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated?

Bank loans".

What are collateral assignments normally associated with?

"Make a premium payment after the due date without any loss of coverage"

What does the grace period allow a life insurance policyowner to do?

"Grace period"

What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date?

The policy's cost basis is exempt from taxation

When a life insurance policy is surrendered, how does the cost recovery rule apply?

"Policy's cash value is not affected".

When an accidental death benefit is added to a whole life policy, how does this affect the policy's cash value?

Monthly income payments"

Which of these is NOT a valid policy dividend option?

Grace period

Which policy provision protects the policyowner from unintentional lapse of the contract?

A dividend option is selected by the insured at the time of policy purchase"

Which statement is true regarding policy dividends?